Exam 17: Crises and Consequences

In a vicious cycle of deleveraging:

Maturity transformation is converting _____ liabilities into _____ assets.

Maturity transformation can be done by:

Explain the trade-off between rate of return and liquidity. How do banks affect the trade-off?

In an asset bubble:

After the 2008 financial crisis, proponents of austerity argued that it was the appropriate policy because:

Shadow banks differ from commercial banks because shadow banks:

On average the unemployment rate increases by 7% following a severe banking crisis.

After the 2008 financial crisis, interest rates on Italian debt increased because:

The first bankers were:

Who wrote A Monetary History of the United States?

The banking crises in Finland, Sweden, and Japan in the early 1990s were caused by numerous bank runs in each country.

What is maturity transformation? Explain the difference between maturity transformation by depository banks and by shadow banks.

The 2008 financial crisis in Europe was caused primarily by problems with:

During the Great Depression in the early 1930s:

From the 1930s until the 2008 financial crisis, banking regulation addressed all of the following except:

A repo is:

Most funds received by depository banks are:

Proponents argued that fiscal stimulus was appropriate after the 2008 financial crisis because most major economies had _____ unemployment and _____ inflation.

Debt overhang results in _____ levels of debt and assets with _____ values.